1. Budgets provide goals for employees to work toward. 2. Written budgets help communicate plans to all employees. 3. Some employees might understate sales targets in budgets. 4. A budget forces managers to spend time planning for the future. 5. Some employees might always spend budgeted amounts. 6. With rolling budgets, managers can continuously plan ahead.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Label each item below with a “B” if it describes a benefit of budgeting or a “Not B” if it describes a potential negative outcome of budgeting.
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